Global market snapshot - ANZ

Analysts at ANZ Bank New Zealand Limited offered a market snapshot.

Key Quotes:

Highlights:

• US retail sales rose 0.5% in June after an upwardly revised 1.3% in May; Empire manufacturing eased back to 22.6 from 25.
• The US petitioned the WTO to take action on China, EU, Canada, Mexico and Turkey for their retaliations to the US steel & aluminium tariffs.
• The IMF maintained its 3.9% global growth forecast for this year and next, however highlighted less even growth and rising risks.

"Equities were biased slightly lower with treasury yields up a few bps. Oil fell sharply and the USD dropped against the G10. Equities were struggling to find direction with European bourses down 0.3-0.8%. In the US, the S&P 500 continued to hover around 2800 with earnings season upon us. US treasuries were up 1.5-3bps across the curve with the Fed’s Kashkari publishing a note about the risks of an inverted yield curve. Oil was down over 4% today with Trump and Putin highlighting they do not want prices too high or too low. It seems they have incentives aligned."

"On the whole, US data was reasonable overnight. June retail sales rose 0.5% m/m, with upward revisions to May. However, sales within the control group were flat (last 0.8%). The Empire Manufacturing survey dipped to 22.6 (from 25.0), but remains at a reasonable level, suggesting tariffs are not denting business confidence to a significant degree yet. However, the orders, deliveries, shipments inventories and employment sub-components all fell."